The deal has been announced on December 14, but some details had to be finalized. Now, Sparrow Holdings, a Singapore-based crypto company that offers a variety of products to its users, is officially a part of Amber Group that had to sort out some financial issues before committing to the deal.
Amber Group had ties with FTX and invested about 10% of its trading capital in various FTX’s products.
When the FTX collapse created a massive hole in their books, Amber Group pulled out from the deal to do some internal accounting and ensure that they can afford to acquisition. The deal finally fell through and AG is now a big player in the Singaporean crypto market.
Sparrow Holdings has a big asset that AG wanted
Sparrow Holdings picked up its payments license from the Monetary Authority in Singapore just three months ago and now can use its payment tokens for payment purposes. This development allows the company to release several new products to its local clients while complying with the Payment Services Act.
Sparrow Holdings is a provider of various financial products to institutionalized and individual investors. It focuses on implementing new design solutions and interesting ways of interacting with customers without breaking any laws and regulations which is quite important for the contemporary user.
Now, Amber Group will have a strong presence in one of the most important SEA crypto markets.
The decision to acquire the company was made a long time ago, but Amber Group faced one unforeseen challenge after another postponing the deal. At the moment, both companies are working on creating a powerful joint corporate infrastructure to ensure that they can expand together in the massive SEA region.
The FTX collapse did not affect the whole world
While the US media is full of different opinion pieces and narratives, the crypto world is just going forward not waiting for anyone. It is unlikely that the fallout of the FTX debacle will slow down the industry. However, many deals and developments in the global crypto industry have long-term implications and won’t budge the price right now.